THE administration of President Bola Tinubu will likely spend about N341.23bn on settling judgment debts between 2023 and 2027, according to PUNCH.
The judgment debts were listed as promissory notes in a document titled, ‘Schedule of Promissory Notes Issued by Category as at September 30, 2022’ by the Debt Management Office.
According to Investopedia.com, a promissory note is a debt instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.
Section 4 of the Government Promissory Notes Act states that government promissory notes are paid from the general revenue and assets of the federation.
It read in part, “The principal sums and interest represented or secured by any government promissory notes are hereby charged upon and shall be payable out of the general revenue and assets of the federation.”
Out of the 21 promissory notes related to judgment creditors, 12 would be settled during the four-year tenure of the current administration.
While two are dominated in naira, the rest will be settled in dollars.
The two naira-dominated judgment debts would cost about N39.07bn while the rest in dollar would cost $393.89m (about N302.61bn, using the exchange rate of the Central Bank of Nigeria of N768.27/$).
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